As we slowly start to come to terms with life in the presence of COVID-19, the next challenge will be adjusting to the new marketplace created by the virus. It is a marketplace that has changed significantly since the EU became the epicentre of the pandemic in early March.

With the attention of national governments starting to focus on rebuilding their economies, we are likely to see some impact on consumer spending. As was evident during the economic crash, austerity budgets can affect consumption trends and in particular demand for higher-end proteins such as beef and dairy.

The most sacred principle within the European Commission has been protecting the integrity of the single market

However, in this instance the more significant threat to an exporting country like Ireland could stem from the extent to which COVID-19 has damaged the integrity of the EU single market. By far the biggest benefit of Ireland’s membership of the EU has been access to an internal market of 500m consumers.

The most sacred principle within the European Commission has been protecting the integrity of the single market. A key part of this was ensuring a level playing field where common rules and standards were applied across each member state. While maintaining this level playing field remains the key goal of the EU’s negotiation strategy on Brexit, the extent to which it continues to be applied within the EU in the wake of COVID-19 to date is being questioned.

Many of these firms will now be competing in the single market with firms from poorer member states

There are fears that decisions taken by the Commission to effectively suspend state aid rules to allow member states battle the virus could have long-lasting consequences on the level of cohesion within the internal market.

The move has allowed richer and less indebted states put in place multibillion euro liquidity packages that have been distributed to firms on a national basis. Many of these firms will now be competing in the single market with firms from poorer member states that could not afford to provide the same support.

At a recent EU Economic and Monetary Affairs Committee meeting, MEPs expressed concerns that Germany, with the equivalent of 25% of the EU’s GDP, has accounted for almost 50% of the total state aid provided by all member states. The introduction of this multibillion euro liquidity support package for German firms has introduced a new element of unfair competition into the single market.

In recent years the trend towards renationalising food markets was becoming increasingly evident in many of our major food exporting market

Alongside the threat of unfair competition in the single market, another concern for Ireland will be the extent to which COVID-19 could increase the level of market protectionism across member states. In recent years the trend towards renationalising food markets was becoming increasingly evident in many of our major food exporting markets. There are clear signs that in the wake of COVID-19 this could accelerate.

In France, where in recent years we have seen Irish beef disappear from the retail shelf due to pressure on retailers to support domestic product, President Emmanuel Macron vowed, in the midst of the pandemic, to regain control of food production. In his address to the nation in March, he described it as madness to continue delegating food production to others.

Of course, an EU-wide move to regain control of food production could actually benefit Ireland. But unfortunately there are no signs of a unified approach in this direction. While there may have been some suggestions in the recent Farm to Fork strategy that more stringent standards will be imposed on food imports into the EU, the Commission gave no indication that it intended to regain control of food production. Unfortunately, it is more likely that control will be seized at a national level, with imports from other EU member states falling foul.c

In recent years the trend towards renationalising food markets was becoming increasingly evident in many of our major food exporting market

As we report throughout the Irish Farmers Journal this week, it is positive to see market prices recovering from the initial impact of COVID-19. But it is critical that Ireland, alongside other member states, stays politically focused to ensure that the legacy of the virus is not allowed to damage the integrity of the EU single market or create and un-level playing field. Yes, we need to control our food supply chain, but the policy to do this must be formed at EU level, not by individual member states.

The importance of our crops sector

The sector most affected by the EU visions published last week is tillage. The imposition of a 50% reduction in the use of essential crop protection tools for this sector, and especially this country, is a tough challenge.

For decades the industry has acted to minimise rate and cost. There is a clear willingness to reduce the dependency on and use of costly pesticides, but we do not yet have viable alternatives. When these come the sector will, no doubt, embrace them unless they are prohibitively expensive or proven not to be effective.

The real weakness in this vision is the lack of assurance of reward for those who achieve the required and desired objectives. The EU’s grain producers have long been expected to compete with cheapest origin imports on an unlevel playing field. The push to organic, plus inevitable short-term hits on crop yield, will only open the EU door wider to imports produced on the vast plains of the world from farms that have greater scale than the entire crop area of this island.

To be found wanting on any of these counts could severely damage the reputation of an exporting country

Can we have a sustainable agricultural industry against this background? A nation without its own essential inputs will be found out in this era of traceability, accountability and sustainability. To be found wanting on any of these counts could severely damage the reputation of an exporting country. Losing track of the importance of our crops sector could leave us more vulnerable in the future than we are prepared to admit now.

Farmyard is not a playground

It is a wonderful time of year to be out on the farm.

The long days and unbroken sunshine bring new energy. It is a time when farmers can look forward. Look forward to the shine coming out on cattle as they lose their winter coat, to the winter crops powering ahead and to the excitement and comradery of the kids getting their summer holidays.

No matter where their careers take them, those who had the luxury of growing up on a farm will undoubtedly recall with fondness the summer months spent with their parents.

To be found wanting on any of these counts could severely damage the reputation of an exporting county

But of course there are some who won’t look back on these days in the same way. For some, the memories will be much bleaker. For some, the memories of unbroken sunshine will be replaced by the dark cloud of a farm tragedy. It is a cloud that today hangs over too many farm families.

With the silage season now in full swing, both contractors and farmers need to hold each other to account. Contractors must ensure that drivers operate to an acceptable safety standard at all times. The cab of a tractor is a workplace, not a social centre in which to congregate or interact with friends on social media. Similarly, farmers also have a duty to provide contractors with a safe working environment. It should be a condition of engagement that no children be present in the farmyard when harvesting is in progress.

Growing up on a family farm is a wonderful privilege, but the farmyard must not be turned into a playground.

Steady milk supply shows underlying strength of industry

It looks like Irish dairy farmers have come very close to delivering a back-to-back billion litre milk supply for April and May.

The fact that there was barely a wrinkle of discomfort in the sector, despite the COVID-19 restrictions, is testament to the structures and operational procedures employed by our milk processors. There were some warning shots fired earlier in the season, but, thankfully, the impact of COVID-19 has been handled very well by the managers, employees and farmers right through the chain.

The impact of a prolonged dry period across Europe would strengthen prices further

Global prices seem steady which will help co-op directors make positive decisions on prices over the coming weeks. The impact of a prolonged dry period across Europe would strengthen prices further. It is interesting to see Glanbia lead the charge on a biodiversity payment as part of a monthly milk price.